Log In

Reset Password
BERMUDA | RSS PODCAST

One a revenue bright spot for ATN

ATN International, the US company that owns 51 per cent of One Communications, suffered losses in the third quarter as a result of hurricanes Irma and Maria striking the Caribbean.

The Massachusetts-based company has reported an operating loss of $19.5 million for the period, and a net loss of $24.8 million, or $1.53 per share.

However, ATN's operating income excluding hurricane-related charges for the third quarter was $17 million.

Revenue generated by ATN's Bermuda segment has been one of the bright spots for the company this year. In the first nine months of this year ATN's revenue was $373.5 million, up 14 per cent year-on-year. The increase was mostly due to revenue from ATN's share of One in Bermuda, and acquisitions in the US Virgin Islands.

For the first nine months of this year, operating income was $14.1 million, which includes $36.6 million of charges related to hurricane damage after Irma and Maria hit the US Virgin Islands in September. The storms caused significant damage to the telecoms network of Viya, a subsidiary of ATN.

Commenting on the quarterly results, Michael Prior, ATN's chief executive officer, said the company had been anticipating a year-on-year decline in its wireless revenues resulting from contractual pricing changes in its US wholesale wireless business.

It saw it wireless revenue decline as a result of the sale of its US wireless business in March. Then in September revenue declined further after the Viya network was impacted by the hurricanes in the Caribbean.

The company has been able to restore partial service across its network in the hurricane-hit region, but the widespread loss of commercial electricity continues to prevent total restoration.

Mr Prior said: “We do have insurance for named storms which compensates us for replacement costs of damaged property, extra expenses and business interruption up to a net coverage of approximately $34 million, but we believe total losses for these items will exceed this level. Additionally, from a financial reporting standpoint, we do not anticipate the positive offset from insurance proceeds to be recognised until 2018.”

ATN's third quarter revenue was $122.1 million, a 12 per cent decrease on the same period in 2016. During the quarter, the company also absorbed $4.4 million in service disruption credits to customers as a result of the hurricanes.

ATN owns telecoms services providers in the US and the Caribbean, as well as Bermuda, and solar power systems in the US and India. One, formerly known as KeyTech, offers internet, wireless and cable television services. In its third quarter results, ATN did not give specific figures for revenue attributable to One.

Mixed fortune: revenue from One Communications was partially responsible for improved year-to-date earnings at US-based ATN International

You must be Registered or to post comment or to vote.

Published November 01, 2017 at 9:00 am (Updated October 31, 2017 at 8:14 pm)

One a revenue bright spot for ATN

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon